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2 hours ago, DonJop12 said:

 

I'm ready to move mine to HSBC for an extra £60 interest pa. Every little helps....

Don’t forget the HSBC Help to buy isa pays zero interest on any balance over £12000 - whereas Halifax pays 1 per cent on the total balance. If you have a help to buy isa since they started you could be on well over £15000 by now so the benefit of the differential will decline over time as your balance grows above £12k.

£12k of course being the balance that attracts the maximum £3k bonus when you buy - assuming you can find a property below £250k outside London to buy or under £450k in the capital you like!

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18 minutes ago, Dorkins said:

Supply of housing is fixed (only one housing stock), demand for housing decreases as price increases. Council tax is a tax on the buyer of the good (housing):

https://saylordotorg.github.io/text_introduction-to-economic-analysis/s06-01-effects-of-taxes.html#:~:text=Key Takeaways-,The effect of the tax on the supply-demand equilibrium,by less than the tax.

 

Therefore if demand drops due to imposition of a tax but supply stays the same then the price (rent) drops.

image.png.c64160d73aa1c03ee218060973f19c17.png

 

The trouble with these models is non of them can predict real world behaviour consistantly. I studied physics and physicists find it hilarious when economists try to claim their subject is in anyway like a science.

In physics, a model has to be shown to make predictions about the real world before it is accepted. In economics, if the model fails to make the prediction, it is reality which got it wrong.

If you want three different predictions about how a policy change will affect the economy, ask three different economists and even then they will probably all get it wrong.

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On 06/03/2021 at 16:53, dances with sheeple said:

Marcus account at about 0.50%, might be a higher rate for new customers, Virgin Money do introductory rates on their savings accounts that are decent for a year on smaller amounts, best bet is a diversified stock market ISA IMO and enough for emergencies in a savings account.

Just got my regular cut in Marcus savings rates, down from 0.50 to 0.40%. Only got a few quid in there now since last year as PMs felt to be the place to be.

They started the email with "we understand this is frustrating" Pr!cks 😠

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On 06/03/2021 at 09:30, bartelbe said:

This is why I have my ISA invested in the stockmarket. Now lets be clear, for someone like me on a limited income, to gamble half my saving in stocks is mad but what choice do I have? If I use a normal bank account I will be effectively loosing money.

The idiot government is constant;y telling people to save but in this crap country, in which houses offer the only secure return, that is impossible for people who can't get on the housing ladder to do.

Interest rates need to return to sane levels, it is the only way to rebalance the economy.

 

On 06/03/2021 at 09:32, Sprrite said:

Cash returns have been terrible since the GFC in 2008/09. 

I think low risk investments within a S&S ISA can return around 8-10% per annum. Given the amount of QE we've had since the GFC, it isn't surprising we have had property and shares surge as theres little else people can put their money into.

 

Flicked over this thread but my career was fairly close to ‘savings accounts’ and the current rates make the two comments absolutely the case for many. 

In the ‘old days’ no ordinary savings customer looked at shares as a viable alternative. They may have looked at shares as an option or part of a portfolio including savings but not as a alternative. 

HOWEVER, some very ordinary robust shares are not only providing scope for growth but are offering 12x the interest rate in terms of dividends. 

Yes, there are risks but I know some fairly heavy investors and they are all pointing me to move my savings into solid boring companies paying 4% to 6% yields...some of which are at low share prices because they are out of vogue due to some shares being over sold. 

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On 07/03/2021 at 12:55, dugsbody said:

That is my view too. Inflation in staples has either been low, non-existent or deflation. That is because humans improve production and distribution every year.

The inflation has all been in asset prices as the money looks for a home. 

Think of inflation in house prices this way:

- If you bought in the 90s, you probably saw your equity increase dramatically, your monthly payments fall dramatically. You could have overpaid and been mortgage free in (roughly) 15 years.

- If you buy in 2021 you are very unlikely to see rates go much lower, your term is probably 35 years, your monthly payments are not going to fall much during the lifetime of that 35 years and you will therefore not have the abilitiy to overpay as much. With some overpayments you could possibly be mortgage free in (roughly) 25 years.

You've lost 10 years of potential financial freedom and better lifestyle. That is real inflation to me.

 

On 07/03/2021 at 13:11, Dorkins said:

This fits with my rough calculation too, that a worker buying a house today is at least 10 years of working life poorer than his/her equivalent from 25 years ago.

First time I have seen anyone express this. From a young age I measured almost everything I buy in terms of time rather than money...best example was a £3k suite a friend bought. At the time that was almost 2 years savings for me. (I bought ours second hand for £25 and it was better quality and lasted longer).

It is so vital if someone buys a house that they don’t waste 10/15 more years (on top of those you have eloquently expressed) just buying something that is painted nicely. 

Last year I saw some truly awful purchases with £190k houses selling for £265k/£275k just because they were immaculate and there was some wind behind the market. Whilst I wouldn’t have bought in such I market I also saw some fairly decent buys eg £230k for something worth about that. I base my values on long term comparisons and 35 years experience

WHEN the market softens (and it has a little here) those who bought badly will be really exposed. 

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On 06/03/2021 at 09:30, bartelbe said:

This is why I have my ISA invested in the stockmarket. Now lets be clear, for someone like me on a limited income, to gamble half my saving in stocks is mad but what choice do I have? If I use a normal bank account I will be effectively loosing money.

The idiot government is constant;y telling people to save but in this crap country, in which houses offer the only secure return, that is impossible for people who can't get on the housing ladder to do.

Interest rates need to return to sane levels, it is the only way to rebalance the economy.

You do have a choice - between 'getting a return on your money' (stockmarket/risk assets) and a 'return of your money' (cash)  😉

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On 06/03/2021 at 08:48, btd1981 said:

That's the savings rate on my cash ISA. For everybody with a grand saved in that account, the letter the bank sent to notify them the rate was being reduced probably cost the bank more than the annual interest to be paid.

I have just taken over my Dads Finances as he is 87 and not able to run everything like he was. He has quite a bit of money saved and 6 different pensions. They are not big pensions but all add up to an ok living. 

He can earn £1,000 a year tax free and then pays 20% tax on anything else the Banks don't take the tax at source so every year he has to collect his 6 P60's and statements of interest then he has an account work out what he owes the tax man. Nat West did not send a Statement for the last financial year so we had a trip to the Bank to Ask for one.

While there the guy said he could not print one in the branch as the system did not allow this, but email it. Dad has no internet or Email so that was out. I asked if they could use my email the guy thought that was a good idea but when he tried as the account was set up without an email address the system would not allow one to be added so that was also out. The only option he would email Head Office who would send by post within 21 days. This we agreed.

The guy looked at Dads account and noticed that it now earnt 0. something interest , lets close it down and open this new account where he would still earn 0.something interest but a bigger something after the 0. No way after waiting in the cold outside the Bank for about 40 minutes and sitting with this guy for about another 20 minutes the thought of the mucking about and hassle to close one account and open another all to earn an extra something after the 0. was not worth the effort. 

Then off to the accountant with all the paper work. Dad ended up owning the tax man an extra £73 but the accounts bill was £325 plus £65 Vat.  Yes £390 to pay a Tax Bill of £73. With interest rates now at rock bottom and the cuts made to Dads savings interest the silver lining is he will be under the £1,000 Tax Threshold next year and I can fill his form in on line. 

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8 hours ago, Insane said:

I have just taken over my Dads Finances as he is 87 and not able to run everything like he was. He has quite a bit of money saved and 6 different pensions. They are not big pensions but all add up to an ok living. 

He can earn £1,000 a year tax free and then pays 20% tax on anything else the Banks don't take the tax at source so every year he has to collect his 6 P60's and statements of interest then he has an account work out what he owes the tax man. Nat West did not send a Statement for the last financial year so we had a trip to the Bank to Ask for one.

While there the guy said he could not print one in the branch as the system did not allow this, but email it. Dad has no internet or Email so that was out. I asked if they could use my email the guy thought that was a good idea but when he tried as the account was set up without an email address the system would not allow one to be added so that was also out. The only option he would email Head Office who would send by post within 21 days. This we agreed.

The guy looked at Dads account and noticed that it now earnt 0. something interest , lets close it down and open this new account where he would still earn 0.something interest but a bigger something after the 0. No way after waiting in the cold outside the Bank for about 40 minutes and sitting with this guy for about another 20 minutes the thought of the mucking about and hassle to close one account and open another all to earn an extra something after the 0. was not worth the effort. 

Then off to the accountant with all the paper work. Dad ended up owning the tax man an extra £73 but the accounts bill was £325 plus £65 Vat.  Yes £390 to pay a Tax Bill of £73. With interest rates now at rock bottom and the cuts made to Dads savings interest the silver lining is he will be under the £1,000 Tax Threshold next year and I can fill his form in on line. 

Sorry to hear about your Dad...it’s always difficult helping and even taking over things. Not helped by woeful returns like this. 

Unless the accountant is doing other things that bill is a lot if it’s a routine tax completion. I have small business owners (ie some traders) who pay that much. Sounds like his ‘minimum fee’  

Many now hold £50k premium bonds...the rates have dropped and potentially it’s a ‘prize’ you may not win but I achieved 1.3% last year and all tax free. In the past premium bonds were a risk because you were losing 6/7/8% interest that could be earned elsewhere. Now £50k earns nothing so the ‘gamble’ is almost nothing.

Good luck sorting everything out. 

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12 minutes ago, Pop321 said:

Sorry to hear about your Dad...it’s always difficult helping and even taking over things. Not helped by woeful returns like this. 

Unless the accountant is doing other things that bill is a lot if it’s a routine tax completion. I have small business owners (ie some traders) who pay that much. Sounds like his ‘minimum fee’  

Many now hold £50k premium bonds...the rates have dropped and potentially it’s a ‘prize’ you may not win but I achieved 1.3% last year and all tax free. In the past premium bonds were a risk because you were losing 6/7/8% interest that could be earned elsewhere. Now £50k earns nothing so the ‘gamble’ is almost nothing.

Good luck sorting everything out. 

We now hold 2 x £50k in premium bonds, first draw was this month and we won 2 x £25 so 0.6%, it's a start.

As for shares, two words... Rolls Royce, and don't forget three letters.... GEC.

 

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10 hours ago, NoHPCinTheUK said:

They must fix the housing market, the unproductive economy and a stagnant job market when the country reopens. I appreciate there are other issues on the table but as long as the points above are not carefully addressed, we will see more and more of these episodes which will be mistakenly analysed as THE problem whereas they’re just the symptoms of a deeper disease. 

Spot on. 

8 hours ago, Social Justice League said:

Thick humans still love borrowing created out of thin air funny money from the corrupt banking system.

COVID would have been more use if it had wiped out most of the population imo, as the c**ts are the masters of their own downfall.  Most need put away imo.

This is very brutal, but the truth hurts.. 

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41 minutes ago, Pop321 said:

Sorry to hear about your Dad...it’s always difficult helping and even taking over things. Not helped by woeful returns like this. 

Unless the accountant is doing other things that bill is a lot if it’s a routine tax completion. I have small business owners (ie some traders) who pay that much. Sounds like his ‘minimum fee’  

Many now hold £50k premium bonds...the rates have dropped and potentially it’s a ‘prize’ you may not win but I achieved 1.3% last year and all tax free. In the past premium bonds were a risk because you were losing 6/7/8% interest that could be earned elsewhere. Now £50k earns nothing so the ‘gamble’ is almost nothing.

Good luck sorting everything out. 

Thank you 

Yes I think the accountant is a bit expensive for what he does. Years ago because Dad gets money from so many different sources everything go very messed up with tax ect and he got this accountant to sort it as he did not want to fall foul of the Tax Man , he has used him ever since.

But 'I'm getting Power of Attorney this week there will not be any extra tax to pay this year due to rates dropping and will do the tax return myself on line. The accountant even said that was the best thing to do.  

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38 minutes ago, Insane said:

Thank you 

Yes I think the accountant is a bit expensive for what he does. Years ago because Dad gets money from so many different sources everything go very messed up with tax ect and he got this accountant to sort it as he did not want to fall foul of the Tax Man , he has used him ever since.

But 'I'm getting Power of Attorney this week there will not be any extra tax to pay this year due to rates dropping and will do the tax return myself on line. The accountant even said that was the best thing to do.  

And despite what I said always worth keeping your foot in with the accountant...even just a 6 monthly chat letting him know you hope to use him when needed in the future. He sounds like he has helped your Dad out when needed. 👍🏻

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